Looking for a stable investment with steady returns? Dividend yield funds could be the answer. These funds focus on companies with strong cash management, leading to consistent dividend payouts and growth opportunities. They offer a balanced approach, blending regular income with potential capital appreciation.
Dividend-paying companies are typically less volatile and better managed, making them more stable even in challenging market conditions. So, if you are someone who wants to invest in equities with exposure to quality and reliable companies, you may consider investing in Dividend Yield Funds.
One such fund is the Baroda BNP Paribas Dividend Yield Fund, which has been launched as a New Fund Offer (NFO) on 22nd August 2024 and is open for subscription until 11th September 2024.
Curious to know how this fund could benefit your investment strategy? Let’s dive in!
Details of the Baroda BNP Paribas Dividend Yield Fund
Baroda BNP Paribas Dividend Yield Fund is an Open-ended equity scheme launched by Baroda BNP Paribas Mutual Fund AMC , which is a joint venture between the Bank of Baroda and BNP Paribas Asset Management Asia Ltd.
The Baroda BNP Paribas Dividend Yield Fund focuses on investing in companies with strong free cash flows, typically associated with steady share price growth. The fund also prioritizes companies with a management team that aligns its interests with those of minority shareholders, evidenced by a consistent track record of dividend payments.
The fund considers NIFTY 500 TRI as its benchmark index. As of 23rd August 2023, the returns generated by the fund’s benchmark are 39.35%, 20.14%, and 22.89% over 1 year, 3 years, and 5 years, respectively.
Let’s have a quick look at the key basic details of the fund:
Meet the Fund Manager- Mr. Shiv Chanani
Mr. Shiv Chanani will manage the Baroda BNP Paribas Dividend Yield Fund. He has over 24 years of extensive experience. Prior to joining Baroda BNP Paribas, he has worked with Elara Securities (India) Pvt. Ltd., E. Fund Management (HK) Co. Ltd., Sundaram Mutual Fund, ICICI Securities Ltd., Shivam Capstock Pvt. Ltd., and Nippon Life India Asset Management Ltd.
Mr. Miten Vora will be the dedicated Overseas Fund Manager for this fund.
Strategic Funds Allocation of Funds
The allocation of funds across various instruments is as follows:
Source: Scheme Information Document
As the fund primarily invests in equities, it is considered high risk. However, it is relatively less risky compared to other growth funds due to its focus on companies that pay regular dividends.
Who should invest in this NFO fund?
The Baroda BNP Paribas Dividend Yield Fund offers a fantastic opportunity for investors seeking regular income through dividends and potential capital appreciation.
This fund focuses on high-quality equities, making it well-suited for:
- Investors with a high-risk tolerance
- Those seeking regular dividend income
- Individuals with long-term wealth-building goals.
Overall, this fund offers a blend of stability and growth potential.
It is always advisable to conduct thorough research on the fund or consult a financial advisor before investing.
